The bill, S.B. No. 2551, amends the Texas Tax Code regarding the eligibility of individuals to pay ad valorem taxes on their residence homestead in installments. The heading of Section 31.031 is changed to specify "INSTALLMENT PAYMENTS OF RESIDENCE HOMESTEAD TAXES." Additionally, the bill modifies Sections 31.031(a-1) and (a-2) to clarify that individuals may pay their property taxes in four equal installments without penalty or interest, provided that the first installment is paid before the delinquency date and accompanied by notice to the taxing unit. The deadlines for subsequent installments are also outlined based on the delinquency date.

Furthermore, the bill repeals Section 31.031(a), which previously defined the individuals to whom the installment payment option applied. This change broadens the eligibility criteria for individuals wishing to pay their residence homestead taxes in installments. The provisions of this Act will only apply to ad valorem taxes imposed for tax years beginning on or after January 1, 2026, which is also the effective date of the Act.

Statutes affected:
Introduced: Tax Code 31.031 (Tax Code 31)